Sweden-based pulp and paper manufacturer BillerudKorsnäs has entered into a merger agreement with Verso Corporation, agreeing to acquire Verso, a producer of coated papers in North America, for a purchase price of approximately $825 million in cash.
 
Verso’s Board of Directors, acting upon the recommendation of a special committee, has unanimously approved, and resolved to recommend the transaction to Verso’s shareholders. The transaction is expected to close in the second quarter of 2022.
 
According to BillerudKorsnäs, the acquisition creates one of the largest providers of virgin fiber paper and packaging, and the company plans “to build one of the most cost-efficient and sustainable paperboard platforms in North America” by converting several of Verso’s assets into paperboard machines while maintaining its position as quality and cost leader in specialty and coated wood-free paper.
 
Christoph Michalski, president and CEO of BillerudKorsnäs, stated: “The combination of BillerudKorsnäs’ expertise in high-quality virgin fibre packaging materials and Verso’s attractive assets creates an excellent platform for long-term profitable growth. We will obtain cost-effective production of coated virgin fibre material in the Midwestern United States. We also plan to sequentially transform part of the business into paperboard production while continuing to serve the U.S. customers. Our investments will create new US-based jobs in a growing market and accelerate the transition from plastic-based packaging materials to renewable sources.”